Vehicle sales fall in March as high oil prices dent demand

By Beatriz Marie D. Cruz, Senior Reporter

NEW VEHICLE SALES declined by 10.4% in March as soaring pump prices dented demand for passenger cars and commercial vehicles, according to a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA).

However, electric vehicle (EVs) sales were a bright spot, more than tripling in March and signaled a shift toward more energy-efficient transport.

In a joint CAMPI-TMA sales report published on Monday, total industry sales fell to 36,104 units in March from 40,306 units sold in the same month a year ago.

The 10.4% drop was the biggest since the 11.2% decline in vehicle sales recorded in January 2022.

Month on month, total car sales inched up by 0.7% from 35,842 units sold in February.

Including other industry data, CAMPI said total vehicle sales exceeded 39,000 units, higher than the February estimate of about 37,000 units.

Passenger car sales, which accounted for 19.18% of industry sales, dropped 18% to 6,926 units in March from 8,449 units in the same month in 2025. Car sales fell by 1.72% from 7,047 in February.

Commercial vehicle sales, which made up 80.82% of the total, slid by 8.4% to 29,178 units in March from 31,857 units a year ago. Sales of commercial vehicles edged up by 1.3% from 28,795 units in February.

Under the commercial vehicle segment, light commercial vehicle sales dropped by 9.3% to 21,552 units in March from the 23,754 units sold last year, while sales of Asian utility vehicles also fell by 6.6% to 6,594 units from 7,057 units sold last year.

Sales of light- and medium-duty trucks in March rose by 3.4% and 4.4% to 647 units and 334 units, respectively. On the other hand, sales of heavy-duty trucks slumped by 49% to 51 units in March.

In the first three months of the year, total vehicle sales decreased by 9.8% to 105,642 units from 117,074 units a year ago.

During the January-to-March period, passenger car sales dropped by 17.2% to 20,151 units, while commercial vehicle sales declined by 7.8% to 85,491 units.

The decline in March vehicle sales could be linked to the oil price surge due to the Middle East conflict, which likely dampened consumer spending, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.    

“Higher prices of fuel and other affected products have decreased consumers’ disposable income, leading to cost-cutting measures, including big-ticket items such as vehicles,” he said in a Viber message.

Pump prices in the Philippines have soared since the US and Israel attacks on Iran which have led to the closure of the Strait of Hormuz.

Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said the drop in vehicle sales in March is mainly an affordability issue.

“High interest rates are still pushing up monthly payments, financing approvals remain tight, and households are delaying big-ticket purchases,” he said in a Viber message.

Car manufacturers are expected to roll out flexible payment terms for gas-powered vehicles to lift demand, Mr. Ravelas said.

Elevated oil prices are expected to drag vehicle sales in the coming months, Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said.

“This will be a challenging year for overall vehicle sales as fuel prices are expected to remain elevated for the next several months and perhaps going into 2027,” he said in a Viber message.

EV DEMAND
In a statement, CAMPI President Jose Maria M. Atienza said more consumers are turning to EVs as an alternative to gas-powered cars amid high oil prices.

“(EV) adoption is mainly driven by users’ growing understanding and acceptance of electrified technologies. We expect this to grow further because of the country’s need for various energy efficient vehicles,” he said.

CAMPI and TMA data showed that total EV sales surged by 224.4% in March to 6,148 units from the 1,895 units sold in the same month last year.

EV sales, which include battery EV (BEV), plug-in hybrid EV (PHEV), and hybrid EV (HEV), also more than doubled from the 3,054 sold in February.

For the first three months, EV sales jumped by 36.2% to 11,800 units from 8,664 units sold a year ago.

HEVs accounted for the bulk of sales in March, which surged by 142.8% to 3,667 units. This brought HEV sales in the first three months to 8,261 units, up 9.9% year on year.

BEV sales jumped by 400.6% to 1,787 units in March, while PHEV sales skyrocketed by 2,378.6% to 694 units.

In the first three months of the year, sales of both BEVs and PHEVs surged by 122.9% and 924.6% to 2,289 units and 1,250 units, respectively.

Mr. Atienza noted that the rising oil prices will largely influence Filipinos’ shift to EV technologies in the coming months.

“This will not only accelerate the preference for electrified vehicles but may also highlight the practicality of energy efficient vehicles like smaller and lower displacement cars. The auto industry will evolve based on the market’s requirement,” he said.

Mr. Colet said EVs are expected to take up a larger share of total vehicle sales in the coming months, as consumers shift to energy-saving vehicles.

According to CAMPI-TMA data, Toyota Motor Philippines Corp., dominated the market with a 49.15% market share, even as sales declined by 6.5% to 51,922 units as of end-March.

This was followed by Mitsubishi Motors Philippines Corp., which saw sales fall by 11.9% to 20,600 units in the three-month period.

Suzuki Phils., Inc. ranked third even as sales dropped by 9% to 4,950 units as of end-March.

Nissan Philippines, Inc. ranked fourth despite the 31.1% fall to 4,634 units sold, while Honda Cars Philippines, Inc. placed fifth as sales declined by 5.2% to 3,968 units.